Biovitrum and Amgen close product deal

Sweden's Biovitrum says it has closed an agreement signed with US biotechnology giant Amgen (Marketletter September 22), under which it has obtained a worldwide exclusive license to Kineret (anakinra) for its current approved indication, and has acquired from Amgen global rights to the marketed biologic therapeutic products Kepivance (palifermin) and Stemgen (ancestim). In 2007, the three products generated combined sales of nearly $70.0 million.

Biovitrum's payment to Amgen is $117.0 million of which $13.0 million was paid at signing on September 12. The remaining $104.0 million has been paid with $84.0 million in cash and $20.0 million in new equity issued to Amgen (3,768,515 ordinary Biovitrum shares). In addition, after Kineret and Kepivance have reached certain cumulative net sales Biovitrum will pay one-time milestones to Amgen.

The Swedish firm also has the right to develop a modified anakinra product for use in orphan indications, as well as gout and pseudo-gout. If Biovitrum develops and commercializes a modified version of anakinra, Amgen will receive single-digit percentage royalties.